Three Munster shopping centres are among five so-called ‘provincial shopping centres’ dubbed the Harvest Portfolio, up for sale promising a nine per cent return on a €50million investment.
There’s a current rent roll of €4.8m on the five grocery-dominated centres, in Dungarvan, Thurles, Cashel, Mullingar and Navan, anchored by the likes of Tesco, Dunnes and SuperValu.
The sale is for Nama, coordinated via Deloitte, and joint selling agents are Lisney’s Duncan Lyster (Dublin) and Margaret Kelleher (Cork), acting with Roderick Nowlan of Bannon. Current income is about €4.8m, offering buyers an initial yield of about nine per cent.
They say it’s the largest provincial/town retail shopping centre investment portfolio to be offered to the market since the market and economy’s dive in ’07/’08. There’s more than 260,000 sq ft of retail, with 30,000 sq ft vacant, more than 2,700 car parking space, more than 100 tenants, and several acres of development land in Dungarvan.
Most valuable of the five, at c €16m in value, is Dungarvan Shopping Centre, anchored by Dunnes Stores: it has a 90%-plus occupancy rate, and a current passing rent of €1.5 million pa, along with a weighted average unexpired lease term of 11 years. Notably, the site also has a 4.5 acres development land opportunity alongside, zoned “town centre”.
It was developed on the sizeable former Glanbia site with access from Grattan Square and O’Connell Street by Tipperary-based Clancy Construction, around 2004.
They’d previously developed the Thurles Shopping Centre, Co Tipperary, back in 1996 and which is also anchored by Dunnes. Thurles Shopping Centre, has 50,000 sq ft of retail accommodation, excluding Dunnes and it has €1.15m pa income.
Also in Co Tipperary, the modern Cashel Town Shopping Centre is anchored by Tesco who pay the bulk of the rent, c €730,000 pa, on a long lease, and this purpose-built centre (with considerable vacancy) includes a stand-alone Tesco petrol station, between the centre and junction 9 on the M8.
Mullingar’s Harbour Place Shopping Centre, with Dunnes as anchor earns €970,000 pa, while Johnstown Shopping Centre near Navan, primarily a neighbourhood convenience centre for Dublin commuters, is anchored by SuperValu with overhead offices and has a passing rent close to €425,000 pa.
The joint agents say the overall portfolio provides a good income stream on largely rebased rents, and are seeking to sell al five centers as one lot.
Each of the five schemes has significant asset enhancement scope, and Lisney and Bannon say that the Harvest Portfolio “provides investors an opportunity to access the improving Irish economy through a resilient collection of grocery led retail schemes which are imbedded in strong regional towns.”
Details: Lisney 01-6382743
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